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tv   Worldwide Exchange  CNBC  January 4, 2018 5:00am-6:00am EST

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bearing down, energy prices on the move as a major blizzard barrels up the east coast. we have full team coverage straight ahead. the dow, nasdaq and s&p 500 all sitting at record highs as wall street kicks off the new year with a bang and nintendo shares soar as pokemon go is set to launch in china. it's thursday, january 4, 2018 "worldwide exchange" begins right now. ♪ good morning a very warm welcome to "worldwide exchange" on cnbc i'm wilfred frost.
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>> i'm seema mody in for sara eisen. good morning to you. >> good morning to you live pictures of norfolk, virginia where the snow is falling hard right now more on the blizzard in just a moment we'll get out to various reporters to keep you updated. first a quick check on the global market picture. futures coming off a day where we saw record highs and record closes for all three main indices. the russell and the transports as well. the dow is up 0.4. the s&p up 0.6 nasdaq up 0.8% we're looking at another good open the dow higher by 55 points. nasdaq 13. s&p by 2 the nasdaq is already up 2.4% this week. it's only been a short week. tech very much kicking off the year in the same vain it performed for most of 2017 a look at european trade that's higher again today.
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we're looking at the ten-year. my apologies 2.47 the yield there >> all right speaking of markets overseas, look at asia a strong session overnight with the japanese nikkei gaining over 3% the best one-day performance over a year, in the past year. analysts are saying this is due to the stronger than expected u.s. auto sales number we got last night plus the rise in energy prices. look at what's happening in europe early trade there. the german dax up about 1% carmakers like volvo, bmw up 2%, 3% the ftse is at a record high even in italy we're seeing gains. the italian ftse up 1.3% fiat chrysler up 4%. also trading at a record high. >> oil prices are up around 2% yesterday. the cold weather supporting energy prices so far this week we're up again today, 0.4%
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close to $62 for wti that's why energy has been the best performing sector on the s&p so far this week and year. gold prices for you. slight declines today. 1,315 the price of gold. the dollar has been weaker across the board let's see where it's trading now. the euro at 1.20 against the dollar you can see against the yen, 112.53 basically flat the pound, 1.35 against the dollar slightly higher by 0.2%. witching to bitcoin. interesting story out of the "wall street journal" today saying that merrill lynch blocked clients and financial advisers from trading bitcoin. the ban applies to all accountants and stops the firm from pitching bitcoin-related products to clients. perhaps highlighteding the skepticism by many on wall street when it comes to bitcoin.
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bitcoin is trading lower by 3.5% 14,490 the top story this morning, preparations are underway as a major snowstorm bears down more than 40 million people from south carolina to maine are under a winter storm warning tens of thousands of people are without power mainly in the south. more than 2800 flights have been canceled nationwide. let's get the latest on the storm's path with angie lassman. >> we continue to watch this system that is intensifying as we speak we have been hearing the term bombogenesis, and that's what we're watching we have seen some of the snow falling. right now we're just starting to see it in new york city. as we continue to go through the day today, it's going to be a thursday event for areas of new york city. we will continue to see the snow falling all the way into the evening hours tonight.
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i want to show you what's going on with those winter weather alerts what you need to focus on, we have that winter storm watch for areas west of the coast. but we have a winter weather advisory and more importantly that blizzard warning. that will be really the problem when it comes to driving conditions flights will be canceled of course it causes issues when it comes down to power outages as we look up and down the coast, from maine down through virginia we are looking at that blizzard warning that means we will see up to three hours where visibility could be below a quarter mile. roads will be impassable while it is a snow event, that's going to be mainly the wind event. when we talk about the snows, as we look at where snowfall forecasts are for the next day or so, we are looking at the western areas of the northeast and of the mid-atlantic getting the better picture we see up to a foot as we head towards maine. boston 5 to 12 inches. we will continue to monitor that
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situation for new york city where the snow just started falling. back over to you >> thank you very much we are keeping a close eye on the energy market as the storm makes its way through the east coast. joining us now is steven shork good morning a lot of moving parts when it comes to the energy part of the story. start with nat gas what do you expect with the price of natural gas. >> nat gas has been a perplexing market over the last two months. we had a good start to the winter the heating season and this is your highest demand season for natural gas prices. but up until about a week ago, natural gas prices have been in a freefall coming into the end of the year and start of this year, we have seen over the last week, week and a half, a 20% rise in natural gas prices interestingly enough, as this
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storm has made its impact and as we have the forecast, very good heating demand over the next two weeks. natural gas prices kind of stalled last -- yesterday. so we're looking at an area where we had that 20% rise, we're now back into an area below $3 decatherm, that's only about $18, $19 a barrel oil equivalent we're up against it. if we don't see a prolonged demand in the market, that's to say this winter weather lasting for more than the two-week forecast, i would expect to see natural gas prices rally to run out of steam >> do we expect a strong correlation with the length of the bad weather and oil prices or is wti a different price gauge? >> wti, there is that disconnect wti you make and take delivery
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takes place in the middle of the country. north central omaha. t the real markets you need to wra watch are the heating oil. we had a significant rally into oil prices, where you would expect to see the rallies. strong physical market trading in new york harbor and a strong physical market traded in the boston harbor. the concern here is year over year fuel oil supplies are very low. 29% compared to a year ago in the mid-atlantic so you have strong demand and you have relatively low supplies what we've seen now is strong action with the oil market leading the market higher.
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spreads rare indicating supply concerns, and if this weather holds, you could see further strength in the market what does this mean for consumers? utility bills on average, how much higher does it typically go up when a storm like this goes through? >> any sort of -- whether it was the hurricanes we saw at the end of the summer or an event like this, you'll see in certain market areas a significant rise. but it's not going to be a very sustained rally. these are supply shortages, and the market will take care of itself when it comes to the consumer generally, high prices, this is counter intuitive to what i'm going to say here, but high prices are a good thing. conversely, two years ago when energy prices crashed, that was a bad thing for the consumer, because we have to keep in mind
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commodities are the leading indicators, if we have rising commodity prices as we have for the past year, this is your best indicator of an improving economy. so ultimate lly while we might feel some pain, when we adjust energy prices for inflation, they have rarely been cheaper. you have a strong commodity market, nand it's indicative of an economy on the mend >> stephen, thank you very much for that. shares of tesla are under pressure after the carmaker reported weaker than expected model 3 deliveries landon dowdy has the details on that >> tesla struggling with production the carmaker releasing fourth quarter delivery numbers that fell short of expectations and pushing back production targets for the model 3. tesla delivered 1,550 units,
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missing estimates of 2500 and a lower revision of the initial goal of 5,000 per week in a release the firm saying as we continue to focus on quality and efficiency rather than just pushing for the highest possible volume in a short time, we expect to have a gradual ramp through q1 and ending with a weekly rate of 2500 model 3s tesla saying it had a major progress of addressing the bottlenecks for the model 3. total deliveries, 101,000, slightly higher than the company expected shares of tesla stalling initially and now down 2% in early trading. back over to you >> thank you very much still ahead, a war of words in washington. a bombshell books gives a rare gli glimpse inside the white house and pokemon heads to cnahi we'll have the latest when
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energy up over 3% the last two trading days because of oil prices rising. cold weather supporting that momentum wti is up 0.3% today 2% of gains for that yesterday close to 62. as we discussed, gas has also enjoyed a rise so far to start the year stocks to watch today includes intel brian krzanich says researchers at google made the company aware of a widespread security flaw a while back the vulnerabilities could let hackers steal data stored in the chip itself such as passwords and cache files. krzanich said he is relatively confident the flaw has not been exploited. >> we're constantly learning new ways t exploit architectures. then patching and fixing that. that's what this is. we were working with all the
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industry partners, arm, amd, the os venders, and the oems of the various hardware systems to patch this issue and resolve it. >> >> the meltdown flaw is known to affect intel chips, while spectre could affect chips from amd and arm. intel expects to push out a patch next week. amd believes there's zero risks to their chips, and arm says a patch has been shared with device partners. apollo global is close to a deal to buy fortress investment stake in one main holdings the deal could value fortress' stake at 1.5 to $2 billion one main abandoned an effort to sell itself last year. at&t plans to launch 5g wireless service in a dozen u.s. cities by the end of this year international standards for the network were finalized last
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month. it's flat in the premarket. costco says same-store sales rose 11.5% in december u.s. sales rose more than 10% or 9% when you exclude gasoline prices part of that was due to an extra shopping day in december because of the calendar shift of new year's day rite-aid's third quarter revenues missed forecasts because of falling reimbursement rates and lower sales. rite-aid stock has lost 45% since last year. nintendo shares are on the move following news that pokemon go plans to enter the chinese market let's get the full story from arjun kharpal who joins us from london arjun? >> remember at the peak of the pokemon go fever in july of 2016, there were hundreds of millions of players. those numbers have dwindled, so china could represent a new leg of growth for the game this market is expected to
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generate between $17 billion worth of mobile gaming rev fews this year. so a lucrative market. it's worth remembering that nintendo only owns a small portion of this game the revenues it gets from pokemon go are small this has not stopped the stock from rallying nearly 200% since pokemon go was released. pokemon go go people breasted in characters, and that brought them back to some other games that nintendo has released it released a new version of its old consoles, like the super anyone denintendo entertainment. the nintendo switch is selling around 10 million units last year and now they expect an additional 20 million units of sales this year for the switch so it could be a big year for nintendo investors for sure will be hoping that the super mario run
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in the stock price can continue this year. back to you. >> how important is china to pokemon go's success, because in the u.s. nobody really plays that game anymore. >> i remember when it was first launched, everybody was out with it at the local parks. but china is the biggest smartphone market. it could generate 17 billion of mobile gaming revenues in order to get new players china could be key to unlocking the growth of the game the importance of pokemon go is the in-app purchases if they manage to increase the number of players, they can sell more in-game items and grow revenue going into this year as well >> arjun kharpal, thank you very much >> you still playing pokemon go? >> i am religiously. every day. >> i can imagine still ahead, firing back president trump blasting his
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former campaign aide steve bannon we're live in washington with details. and keeping a close eye on upheascot.lisnowstorm barrelng t et as the latest on its path when "worldwide exchange" returns
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welcome back to "worldwide exchange." i'm seema mody the global equity upswing continues with the dow up 50 points in premarket trade. s&p 500 is up by 1 the nasdaq higher by 11.
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this coming after the dow, nasdaq and russell 2000 closed at record highs. the dow is less than 30 points away from breaking 25,000. look at the strong gains we saw in asia. this as oil prices trade at a 2 1/2 year high. the nikkei closing higher by 3.5% the fallout continues in washington this morning from a bombshell book that gives a rare glimpse inside the trump white house. eamon javers is live in d.c. with the latest. >> good morning. another dramatic day in washington, d.c. yesterday with the fallout of a new book from authur michael wolff which quotes a number of former white house aides with severe criticisms of the administration, including steve bannon who was quoted in the book as saying donald trump jr.'s meeting during the campaign at trump tower with the russians with both treasonous and unpatriotic.
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that drew a sharp rebuke from the president of the united states yesterday issuing a statement late in the afternoon saying that steve bannon has lost his mind. criticizing steve bannon as a reckless self promoter only interested in media attention for himself and who was a leaker at the white house sarah huckabee sanders, the press secretary, asked whether or not the president's mental fitness should be considered given that the president had been tweeted provocative comments towards the leader of north korea. here's how she responded to that >> i think the president and the people of this country should be concerned about the mental fitness of the leader of north korea. he's made repeated threats he's tested missiles time and time again for years and this is a president who is not going to cowher down, be weak but will stand up for the american people.
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>> aides told me all the drama yesterday afternoon took the air out of other issues being worked on, including a possible spending deal. there was a meeting held here's the joint statement on the spending deal they hope to get to they say today republicans and democrats in congress shared their priorities for a bipartisan spending agreement. the american people deserve a government that funds our great military, protects our borders and leads to a more prosperous future for all the takeaway from that meeting was that ultimately it was less about what happened during the meeting than what didn't happen during the meeting nobody walked out. nobody put a poison pill deal on the table. so the indicators are they are headed towards a spending deal before january 19th. not sure what shape that deal will take or what we'll get with
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it >> coming back to the michael wolff book my immediate reaction was how quickly a former chief adviser, steve bannon, was willing to throw president trump and his family under the bus my follow-up question is has robert mueller spoken to him yet, if not s that not the next expectation? >> we don't know what bannon is quoted as saying in the piece, he thinks ultimately don trump jr. or somebody close to him brought some of the meeting attendees from that russiani inmeeting to meet with the president himself. steve bannon wasn't at trump tower yet, involved with the campaign, but that's a key thing mueller's team would want to know was there follow-up? president denied that. this is a big, big breach of trust between steve bannon and the president of the united states late last night we learned that a private lawyer for the president had sent a cease and desist letter to steve bannon saying he violated a
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nondisclosure agreement he signed with the president. it's a stunning development. i can't think of a case in recent presidential history where a president denounced a former aide like this and an open political civil war develop between a chief strategist and a president. >> eamon, thank you very much. still ahead, a look at the top headlines and a check on global markets and bracing for the blizzard contessa brewer is live in boston where storm preparations are under way. >> the salt is on the road this morning. the wind is already blowing. and boston is bracing for a big one. coming up i'll tell you what is in store for the northeast with this monster storm "worldwide exchange" is back after this
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millions of people from the carolinas to maine embracing for winter storms. we have the latest rally on stocks surge for a third straight day as investors kick off the new year with a bang. and a double helping of food news to get you through the winter storm it's thursday, january 4, 2018 you're watching "worldwide exchange" on cnbc. ♪ ♪ ♪ good morning welcome to "worldwide exchange." i'm wilfred frost. >> i'm seema mody in for sara eisen. >> you're looking at a live picture of capitol hill where the snow is falling now. we'll have more on the blizzard,
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a full update in a moment. >> first we have to look at global markets it's certainly been a strong start to the year. the dow, nasdaq and s&p 500 are closing in record territory. even the russell and the dow jones transports closing at a record high. we'll watch the dow jones to see if it can break through 25,000 today. the nasdaq above 7,000 look at the moves in asia. some analysts say the strong auto sales in the u.s. helped the carmakers in asia move higher and helping the major indices. the nikkei back above 23,000 for the first time since 1992. >> with japan the first trading day of the new year. it's playing catch up from what has been a strong start to the year for the rest of asia.
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keeping a close eye on the energy markets as the major blizzard moves up the east coast. oil prices up over 2% yesterday. energy is the best performing sector on the s&p year-to-date 61.8 the price of wti. on that note, preparations are under way as a major snowstorm bears down more than 40 million people from south carolina to maine are under a winter storm warning tens of thousands of people are without power in the south and more than 2800 flights have been canceled nationwide. let's get the latest from nbc meteorologist angie lassman. >> we are watching this textbook nor'easter moving up the east coast. we started yesterday with snow in florida ice conditions in georgia. we're seeing it track up the coast. right now affecting portions of virginia you can see as we look through washington and up into philadelphia, you will notice even new york seeing that snow moving in.
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as we look to the east, that's where the rain is falling. the much colder air to the west will cause us some problems. we continue to see it intensifying we've seen that pressure dropping, it continues to do so that is causing problems when it comes to wind gusts and causing problems when it comes to snowfall looking at your wind gusts that is what we'll be dealing with the all the way from cape hatteras up to nantucket wind gusts from 30 miles per hour up to 50 miles per hour we do expect some spots to even see wind gusts up to hurricane force. this is a little bit of a different system than a tropical system even still has some similar characteristics. the winds are causing a lot of problems when it comes to conditions as far as the blizzard conditions. you'll notice we do have plenty of snow on tap here as we go through this evening some of the heaviest spots up and down the east coast looks to be maine where we are talking about a foot to a foot and a
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half in the city, new york city, anywhere from 5 to 8 inches. that will cause lots of problems staying off the road is the best bet for us throughout the day today. preparations are under way in boston as the massive blizzard movestessa brewer is l ground >> the blizzard warning from the national weather service begins at 7:00 a.m. that's the same time boston has a snow emergency in effect boston, new york city, and philadelphia schools all closed ahead of this storm. there are state offices in massachusetts closed by order of the governor 3500 flights canceled nationwide logan is largely shut down this morning. 60,000 companies do business in boston proper. the governor has said you need to let your people work from
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home today it's important we keep them off the roads and off of the buses and rails. but this morning the city buses are running at copley square also i wanted to mention in this whole urge to get people to stay at home today, patriots coach bill belichick told his players they better not be late for practice there are two hotels where they play he said, you know, you live in new england. get used to it prepare for it show up at practice. the immediate concern is that the bombogenesis which has begun the low pressure dropping. and we are feeling the breeze throughout the morning the air is cold. then we get the gusts. i have to admit, i'm shivering already. wait until what's to come. we're looking at deadly sub zero temperatures, blowing wind and the accumulating snow. that's all to come we're at the front end of the
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storm. >> do try to stay warm more from contessa throughout the day. let's bring in ron insana. we've seen oil prices supported this week because of the cold weather. but big moving for things like wti which are not traditionally correlated with cold weather how long can this support of oil prices from the cold weather continue >> i think there's some background negatives going on in the middle east which are contributing the unrest in iran, emerging unrest between israel and the palestinians, the u.s. position with respect to the mideast peace process. i think those are bigger considerations with this intense rivalry between saudi arabia and iran, it may be a bigger situation the cold is a driving force but not the major force behind the run. >> we've been in a range of 40 to 60 for wti for some time. a lot of forecasters say that should be the range for next year we started 2018 at the top of
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it we're broken out already is that a bullish sign for oil prices for the rest of the year? >> i think this is more of a geopolitical market. supply and demand have come back into balance relatively speaking the u.s. this year i believe will match saudi arabia in output for the first time since the 1970s. so some factors should restrain prices again, with these intensified concerns about maybe a proxy war between iran and saudi arabia in a place like lebanon, seems to be a guy eopolitical bid under as well. >> hang seng trading at a ten-year high. the knee day above 23,000. is this a sign more investors are looking aprod for opportunity? >> yeah. and global markets outperformed the u.s., as you well know the nikkei has been in a bear market, if you will, since 1990. december 31, 1989, the nikkei
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topped out at 39,000, fell as low as 7,000, and then has climbed back since stocks have been supported we have synchronized global growth which explains the rally around the world >> the fed minutes yesterday more hawkish than some expected, but did not derail equity markets. >> to the extent the fed is considering whether or not tax reform will juice the economy enough to foster tighter monetary policy down the road, you know, they're not fully offset if we see the economy accelerate throughout 2018, that's good news for corporate profits depends how many time the fed has to raise rates you know, right now it's within the descriptions of what we saw last year, three rate hikes, maybe one more if things heat up >> ron, thank you very much. intel responding to a massive security flaw in its computer processors.
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landon dowdy has more on that. >> brian krzanich sold a large stake in the firm after he knew about the security flaw, he addressed the security issue last night with jon fort >> we're constantly learning new ways to exploit architectures. then patching and fixing that. that's what this is. we were working with all the industry partners, arm, amd, the os vendors, the oems of th various hardware systems to patch this issue and resolve it. >> intel shares having their worst day in months.
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the stock is off 1.3% in early trading. back over to you >> thank you very much for that. still ahead on "worldwide exchange," two fast food chains debuting newmenu items that ma be your ideal snow day combination. all those details coming up. and as we go to break, a look at european trade which continues to be positive after yesterday's gains. the ftse hit an all-time high this morning, albei it, it's gains today lower than germany and france
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welcome back to "worldwide exchange." i'm wilfred frost. time for our top trending stories. landon dowdy is back with what's buzzing today. >> snow is trending today. the northeast is bracing for a massive winter storm some southern states have already been hit florida, georgia and the carolinas experiencing rare cold weather and even snow. people taking to twitter and facebook to post photos of frozen pools, palm trees covered in snow and the outdoor snow day activities >> i'm anticipating a lot of social media action later today from friends of mine who are in the cold they're saying, it's so cold, you get beautiful pictures of the snow >> i hope it settles without disruption and lasts for the weekend. >> you can get your double-double with a hot
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chocolate. in-n-out adding a hot chocolate to the menu. the company says the hot chocolate is made from giradelli chocolate. >> if you're in a burger and fries mood, do you want a hot drink with it? >> doesn't really go >> you can add marshmallows. >> that helps. >> taco bell is rolling out limited addition nacho fries the fries feature bold mexican seasoning and includes a size of nacho cheese dipping sauce, this after the company said it would be introducing 20 new dollar menu items >> not a fan of this i love fries >> you're dispatching all trending food news >> i like fries, and i like mexican two, but not merging the two. if i want dipping sauce, i want
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tacos. >> he wants tacos. >> these do well for the company, because they're rare, people want them they're cheap. when you have variety, you have to go for the value. >> high time they get that dollar menu out. they've been talking about it for some time. >> now competing with mcdonald's and jack n the box >> the powerball and mega millions jock packpot are gettig bigger, both worth more than 400 million. the mega millions at 418, the powerball is 480 did you buy a ticket >> i didn't. >> you still have some time. if you leave after the show -- >> powerball, noone won? >> no. you can still win money. >> you can win on both still >> 400 i know you won't share it with us >> can you imagine if i won
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both >> can happen. potentially. >> splitting it with my brother, less a dollar so i can still have more. >> sounds good. stocks hitting all-time highs yesterday. can they keep that momentum the first week of the new year your full trading day after the break. and as we head out a check on u.s. equity futures which are higher dow up 47 points don't go away. you're watching "worldwide exchange" on cnbc. relief in min. and dulcoease for comfortable relief of hard stools. dulcolax. designed for dependable relief. can this much love be cleaned by a little bit of dawn ultra? oh yeah one bottle has the grease cleaning power of three bottles of this other liquid. a drop of dawn and grease is gone.
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hey, need fast try cool mint zantac. it releases a cooling sensation in your mouth and throat. zantac works in as little as 30 minutes. nexium can take 24 hours. try cool mint zantac. no pill relieves heartburn faster. welcome back residents up and down the eastern seaboard are bracing for a major winter storm blizzard warnings are in effect for parts of virginia where 5 to 8 inches of snow are expected. jen carfagno joins us from norfolk with the latest on conditions there hi, jen. >> good morning to you it is a snowstorm out here today in norfolk, virginia so the key is the wind that's been blowing around 20,
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gusting to close to 40 miles per hour you can see the snow falling now. you can see it behind me, covering the grass and the park behind me. look at that snowman, that's over six feet tall that was made before we had all this snow, which is about 4 to 5 inches right now still another couple inches yet to come. the key is the wind. that's going to be felt up and down the eastern seaboard today. especially where the know is falling with blizzard warnings up like here in norfolk, like we have on the jersey shore and up into southern new england, especially from coastal massachusetts up to maine. we have winter storm warnings up for more than 34 million people. the key is we have a multi hazard threat going on with wind, with snow, with coastal concerns up into new england that's going to be a big problem with coastal flooding. behind that, from everyone from maine to florida we have the cold it feels like low 30s this morning in west palm beach everybody is feeling this. back to you. >> thank you very much for that.
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approaching the top of the hour that means the team at squawk squa box is getting ready joe kernen joins us. >> no "i" in team. becky is here, we collaborated on the promo >> we have >> we both want -- if this peters out, i'm going to be -- >> it's not going to they're raising the forecast we're getting snow you'll be satisfied. >> i'm supposed to go to the gym today. i'm thinking -- do people drive over to a gym in a blizzard? >> yeah. you do >> you can or take the subway >> it's a new year, new you. >> i can't take a subway, seema, i live in new york >> i am doing a barry's boot camp class today >> are you really? in the blizzard? >> of course >> or join me at seoul cycsi sot 5:00 p.m >> which one should he do?
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>> neither option. >> if neither one of you are offering pilates, i'm not going. that's my preferred -- does anyone else wake up and hit the futures and go -- does it ever go down? are we going to 25,000 at this point? there it is again. even after another up session yesterday. normally you go through one year, you know december 31st the next year starts, sometimes you expect it won't be just like 2017 but so far it's just like starting out the same. almost as if something good is happening somewhere. whether it's here with tax reform or globally with growth estimates in europe being ratcheted up >> tony blair doesn't want to leave. >> i know. he's doing his best to try and derail things. >> i think the rational is that when the people -- one of the
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biggest votes ever, right? in terms of measuring sentiment. maybe they were just in a bad mood or they were in a phase where they didn't mean what they said does he want to do best two out of three what's the rational? >> he's trying to fame it to say people should have a second vote once the exact terms are known the difference is, i think this is important to highlight, the opposition party, the labour party, which he used to lead, still says we carry out brexit that was the case before the june election and now. that kind of means these headlines from people like tony blair who are not in politics anymore don't have that much power. >> that's good i'm worried about tesla. reading that i guess they can't make enough is that it the model 3, did you see that? come on, we're doing this together >> yes i saw it they were ratcheting down, still in production hell >> is that what it is? >> almost the lead story in the
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"journal." missed badly >> really hard >> joe, becky -- >> all right all right. >> can we have a triple tease tomorrow >> i don't -- it's 5:52. we could do the triple tease at 5:59 with andrew >> we'll see all three of you then that's at 6:00 >> he's here >> he's a mess >> "squawk box" coming up in seven minutes time u.s. futures now, let's check in on them. looking nicely higher. joining us is tobias lefkovich joe is right, it's resoundingly positive again this year somewhat surprising. can it continue for as much as we saw last year >> it can continue we will see more equity flows to change that. most flows last year were occurring outside the u.s. if you looked at u.s. oriented equity etfs, the net number was a net outflow for the third year
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in a row investors in the u.s. have not been as excited about the u.s. institutional investor is a different story. they are much more bulled up, they have gone into euphoria level, that suggests more than 70% probability of a down market this year. so we are worried people are getting too excited. >> could we see a big employee into u.s. equities from u.s. bonds given that we're having hikes going up and bonds going down this is a great rotation argument that has been going on. what typically happens is investors have to lose money for a period of time to recognize they have lost money and it's not just an opportunity to buy something when they pull it back remember when the tech bubble burst. it took 17 months until people realized that enough to start pulling money out of aggressive growth mutual funds. i don't think it's something that can happen overnight. i think it takes a longer time
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i investors need to know they lost money for a longer period of time. it takes six months, nine months, 12 months, they start looking at their statement saying what's the opportunity? >> that recognition takes time >> yeah. and there's been pullbacks before it's a 34-year bull market in bonds. >> historic in its own way let's talk about the latest fed meeting minutes, which showed they think this is a tighter labor market, stronger economy there's forecasts for gdp growth of 8%. the last time that happened was in 2005. do you see that again this year? >> if we look at credit conditions, they're telling us the next nine months, the economy is relatively strong that's without the potential benefit of the tax policy. particularly in areas of spending, where you could see something much more intense in terms of economic activity
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and should that play out, i would argue the tight labor conditions are getting tighter our work says wage inflation is clearly coming this will prod the fed to do something. that might be the catalyst for pullback in the market investors don't believe the economy is there and the fed is there. >> forecast for the dollar last year stronger global growth and a weaker dollar was helpful for the economy. >> we're looking for benign decline on the dollar. some weakness, nothing dramatic. everybody went into last year believing the dollar could be stronger they were wrong. european indices did well. once you put in the dollar translation factor if you took it out, the s&p crushed europe so this is an important issue. the dollar keeps weakening this will be a problem for europe >> crushed europe but not hong kong >> no, em was doing well and continues to do so >> great stuff thank you very much. that's pretty much it. >> it is >> we are looking at the weather
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throughout the day and futures as well which are pointing to a higher open continuing the great start to the year. that'st ifor "worldwide exchange." "squawk box" comes up nextur jot for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember. wifiso if you can't live without it...t it. why aren't you using this guy? it makes your wifi awesomely fast. no... still nope. now we're talking! it gets you wifi here, here, and here. it even lets you take a time out. no! no! yes! yes, indeed. amazing speed, coverage and control.
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good morning market rally trifecta. the dow, nasdaq and the s&p are all sitting at record highs. as the dow is closing in on 25,000, futures are up again this morning a major blizzard barrelling up the east coast. we'll tell you about it. it started in tallahassee or something. they had snow in florida how businesses are reacting from the carolinas to new england and excerpts from an incendiary new book prompted president trump to go after
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steve bannon it's thursday, january 4, 2018, "squawk box" begins now. live from new york where business never sleeps, this is "squawk box." good morning welcome to "squawk box" on cnbc. we' we're live from times square snow is coming down. look at the u.s. futures at this hour we were talking about green arrows this comes after a day of records again. the s&p 500 crossed 2500 for the first time yesterday today we'll watch the do you closely. the dow sitting at 24,922. we are a few points away


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